I got these letter construction magnets from Scholastic and they are made by Learning Resources. This goes great with Handwriting Without Tears if you use it. Students construct the letters and you can practice abc id or spelling sight words. Ethan had fun making his name.
I made some letter construction mats for the kids to use at school. You can grab them for free here.
I also made individual files for each letter so you can make sight words or the students names and they construct them. You can grab that freebie here.